First time used car buyer here and first time loan applicant here, so I might be a bit dumb when it comes to this. Really appreciate you guys perspective on this

Recently been in contact with a sales person selling a bank lelong car for way below the usual market price at RM58800 (not OTR, just harga body). They also offering a further 10% discount if buy cash, or a 5-9 years “loan kedai” at 3% PA interest.

The whole process goes like this according to the salesperson.
1. Apply for a loan with them, once loan approved, (or skip this step if buying with cash) they will register with the warehouse for car release.
2. I will then be required to pay a “booking deposit”, and they will send a runner to settle everything with the bank to release the car.
3. The runner will then send the car to the nearest JPJ, or you can request to send to a workshop or location of your choice for you to view, inspect, or test drive etc etc.
4. You can either reject the car here (then will refund booking deposit), or agree to take the car at this point.
5. If agree then runner will brings it to Puspakom for final inspection, then after pass Puspakom then will bring it to JPJ for register and transfer all the name and whatnot and sign final agreement.

So here’s my question. I know that the nature or condition of bank lelong cars and they can be hit or miss. But in this case they let me send to my own workshop of choice, and if I get a vehicle inspection service like SKRUT or VIMS to do a thorough inspection on it before agreeing to take it, it should be okay? And I’m also prepared to put in the work and money for fixing if there are any problems that comes up unless it’s like problematic long term issues like rust of flooded cars.

I also know “loan kedai” can be shady and interests can be nuts, but in this case they gave me breakdown and the monthly repayment comes to around RM1120/month for 5 years tenure if I take a full loan, so the interest comes to about 3% P.A. which seems to check out. (Note that I don’t plan to take a full loan and I’m gonna probably put a 30% down payment, this is just for reference).
I can actually afford to buy cash too, but I would rather keep the money because my various investments and assets gives me way more than 3% returns P.A.

So on paper, this deal seems okay?
Or am I missing anything and I should avoid it no matter what?
Any advice or experiences by fellow members who has done similar deals is highly appreciated.

WHAT CAR?

Way below market price is already a red flag. And No, you cant buy bank auction cars directly. Bidders would have to bid during the auction and only if they win they could get the car. Dont fall into such scams.

2018 GT86

Honestly i usually will avoid these loan kedai.
Too many hidden variables to be truly safe.

Scam lah.

Once car kena tarik to warehouse, only with bank's letter can the warehouse release it. Whatever other ppl told u are all bullshit.

Just like got ppl say they got lobang to buy Kastam confiscated goods. Bunch of stupid mah kena conned loh.

The car can only be sold via public auction, or the hirer p bank pay min 3x instalments (for the bank to issue letter & let hirer p redeem the car).

Otherwise, it's they take ur money, they go pay the bank, take the car out & went missing thereafter. While u're stuck with a loan kedai which u never seen the money.

God bless u.

sounds like scam for half price of market value, if really real, why not the car dealers took it for themselves and sell at market value?

it sounds too good to be true. cheap and low loan kedai interest.
is this shop legit? try looking for info online. Facebook is a cesspit but maybe there are people who had previous experience with the shop.

That person will just disappear after getting your deposit.

Thanks for all the valuable feedback from you guys up there, just a quick update.

I guess deep down I know it's a bit "too good to be true" as well. Hence why i came to post and ask in the first place.

Anyways following some of you guys advice here I went to do some digging. Not much info can be found about their "shop", but I did some digging on their company website and realised the domain has only been register last month, so that's a bit fishy there. Plus the website is very poorly designed.

Did a quick search on the "salesperson's" number on Truecaller and noticed that he has had 5 spam reports already, so another red flag.

And the biggest red flag of all, i found a listing on Mudah.my with the exact same pictures of the car he sent me and that listing is selling that car for Rm120k. So needless to say, it's as good as confirmed a scam at this points.

Thanks for all the feedback.

he curi pic from mudah like that, avoid & report ads.
block fone

for auction car right,

can we apply loan or only cash buyer?

some car, even lelong still bit expensive for the starting price.

All transactions are in cash. You also have to apply and place a deposit to be a bidder. No joy bidders

check if it is a clone car from SG, if yes, gg liao